Consumer coupons boost sales of ready-to-eat meals

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Consumer coupons boost sales of ready-to-eat meals

A person selects a ready-made meal for lunch at a convenience store in Seoul on June 18. [NEWS1]

A person selects a ready-made meal for lunch at a convenience store in Seoul on June 18. [NEWS1]

 
Sales of meat and ready-to-eat meals at convenience stores surged on Tuesday, the day that Korea’s new consumer coupons first took effect, reflecting a shift in spending patterns as more shoppers avoid rising dining-out costs.
  
GS Retail, which operates GS25, reported on Wednesday that sales of domestic beef at its stores jumped 178.4 percent on Tuesday compared to June 24, the same day of the week a month earlier.
 

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Sales of chicken rose 134.1 percent, while domestic pork climbed 118.5 percent. Kimchi also recorded a large increase of 104.9 percent, sauces, 79.4 percent and domestic fruits, 60.3 percent. Other top-selling items included canned fruit, for which sales were up 33.9 percent, toilet paper, up 32.7 percent and eggs, up 23.1 percent.
  
CU, operated by BGF Retail, saw similar trends. 
 
Sales of ready-made meals such as boxed lunches, gimbap (seaweed rice rolls) and sandwiches rose 23.8 percent overall, with sales of boxed lunches up 23.1 percent, gimbap up 35.8 percent and sandwiches up  29.7 percent. 
 
Sales of instant noodles rose 13.9 percent, with packaged ramen up 19.5 percent and cup noodles up 12.3 percent. Sales of instant rice rose by 10.6 percent, health supplements by 31.7 percent and home meal replacements by 19.6 percent. 
  
A notice at a convenience store in Seoul informs customers that the consumer coupons are accepted on July 22. [NEWS1]

A notice at a convenience store in Seoul informs customers that the consumer coupons are accepted on July 22. [NEWS1]

 
7-Eleven also reported notable growth in food and beverage categories. Sales of ice rose 70 percent, pouch drinks and ice cream rose 60 percent each, instant meals increased 40 percent and beer, 30 percent.
  
Retailers say that the increased demand for food and daily essentials likely reflects consumer sensitivity to inflation of dining-out costs. 
 
Many shoppers appeared to turn to convenience stores for grocery purchases. Some chains also offered discounts or freebies on high-demand items such as meat, ramen and rice, based on purchase trends from previous rounds of consumer coupons.
 
GS Retail said that convenience stores in residential neighborhoods recorded the highest sales growth, excluding locations in vacation destinations. This trend reflects how the consumer coupons are restricted to use in place of residence.
 
While the data only reflects single-day sales with a limited number of coupons issued across the country, convenience store operators expect continued growth as the usage of consumer coupons ramps up.
 
“We expect full-scale coupon spending to begin this weekend when most of the payouts are completed,” a GS25 official said. “We will continue to focus on stabilizing food prices and boosting domestic demand.  
 
Operators say that the coupons are already driving noticeable changes in consumer behavior. 
 
“As the consumer coupons roll out, we’re seeing sales increase across key product categories,” a BGF Retail official said. “We expect the momentum to continue, especially with the industry launching large-scale promotions to support budget-conscious shoppers.”
 
The consumer coupons are part of the government's effort to revive local economies and support small businesses. These coupons act as restricted cash that can be spent only at designated venues such as convenience stores, small retail shops and restaurants within the users' residential area. 


Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM JI-HYE [[email protected]]
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